New deadline for re-determination of admin penalties on taxes

The UAE's Federal Tax Authority (FTA) urged eligible taxpayers to apply for the re-determination of administrative penalties on taxes ahead of the December 31 deadline.

In a statement posted on the national news agency WAM, FTA said tax registrants who were unable to meet the criteria for benefiting from the re-determination by December 21, 2021, will be eligible if they fulfill necessary conditions.

The authority outlined three conditions that need to be met in order to benefit from the re-determination of administrative penalties imposed before 28 June 2021.

First, the administrative penalty must be imposed under Cabinet Decision No. (40) of 2017 before 28 June 2021, and remain outstanding. Second, the tax registrant needs to have settled all due Payable Tax by 31 December 2021. And third, the tax registrant must have paid 30% of the total unsettled administrative penalties due until 28 June 2021 no later than 31 December 2022.

All taxpayers must complete all related procedures through the e-services portal on its official website.

The FTA also noted that it is essential for taxpayers to pay their due payable tax before the due date to avoid any late payment penalties.

In the same regard, the Authority cautioned that bank transfers can take up to three working days to process the payment; hence, the period must be taken into consideration to ensure that FTA receives the payment before the due date.